Hoshin Kanri – From strategy to individual goal planning

Julie Miller Integrys Energy Services

Session M26

Learning Objectives • Understand the roll out and implementation

process of Hoshin Kanri in our organization • Understand the benefits and the lessons

learned while implementing and executing Hoshin Kanri

• Understand the approach undertaken at different organization levels.

Learning Objectives • Obtain a roadmap and template for you to

use with your teams. • Walk away with a clear understanding on

how an X matrix can ease the load for both the employee and the leader

• Gain understanding on how an X matrix can help your change management efforts

A little history… • Integrys Energy Services is non-regulated energy

company serving commercial and residential customers across the US

• Our parent company, Integrys Energy Group, includes mostly regulated utilities

• Integrys Energy Group has 3500+ employees • Integrys Energy Services has about 300

employees • We are seven years into our quality journey

What is Hoshin Kanri? • In Japanese, hoshin

means shining metal, compass, or pointing the direction, kanri means management or control. The name suggests how hoshin planning aligns an organization toward accomplishing a single goal.

en.wikipedia.org/wiki/Hoshin_Kanri

What is Hoshin Kanri

• The discipline of hoshin kanri is intended to help an organization: – Focus on a shared goal – Communicate that goal to all leaders – Involve all leaders and employees in

planning to achieve the goal – Hold participants accountable for

achieving their part of the plan, and understanding what it is

en.wikipedia.org/wiki/Hoshin_Kanri

Hoshin Kanri or X Matrix? • A hoshin table can take many forms • We chose the X matrix, or as we call it…

The Pinwheel!

The path for planning

Mission

Strategies

Objectives

Goals

Action Items

Senior Management

Teams

Middle Management

Level 1 – Senior Leaders

Level 1 – Senior Leaders Objective five

Objective four

Objective three

Objective two

Objective one

John

Sue

Andy

Pat

Mission oneMission twoMission three

Stra

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thre

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Stra

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two

Stra

tegy

one

Team

one

Team

six

Team

four

Team

five

Team

thre

e

Team

two

RESOURCES

Teams

Objectives

Strategies

Mission

1

2

3

4

Objective five

Objective four

Objective three

Objective two

Objective one

Jo

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Su

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nd

yP

at

Mission oneMission twoMission three

Stra

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gy

th

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Stra

te

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tw

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Te

am

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six

Te

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RESOURCES

Teams

Objectives

Strategies

Mission

Basic Steps • Step 1: Fill in the missions or directions • Step 2: Identify your strategies or goals

– Complete relationship boxes

• Step 3: Determine your objectives or actions – Complete relationship boxes

• Step 4: Assign responsibilities – Complete relationship boxes

What didn’t work well with… • Senior Leaders

– Walking into the meeting with no proof – Expecting them to “just get it” – Giving them instruction and sending them off – Starting with a blank slate

What worked well with… • Senior Leaders

– Lots of pictures! – A simple, non-business example

• Should be a full set of plans – Bring feedback from employees on why and

how this will help – Confidence

Level 2 – Team Leaders

Level 2 – Team Leaders Goal five

Goal four

Goal three

Goal two

Goal one

Met

ric o

neM

etric

two

Targ

et o

neTa

rget

two

Strategy threeStrategy twoStrategy one

Obj

ectiv

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ree

Obj

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o

Obj

ectiv

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e

John

Dan

Pat

Mar

y

Andy

Sue

Metrics or Targets

Individuals

Goals

Objectives

Strategies

1

2

3

4

Basic Steps • Step 1: Copy your strategies over • Step 2: Copy your applicable objectives and/or

create new objectives – Complete relationship boxes

• Step 3: Copy your applicable goals and/or create new goals – Complete relationship boxes

• Step 4: Assign responsibility and metrics/targets – Complete relationship boxes

What didn’t work well with… • Team Leaders

– Sending them off without help – Allowing them to explain the process – Having them fill it in on their own

What worked well with… • Team Leaders

– Facilitate the first session with them – A simple, non-business example

• Should be a full set of plans – Bring the whole team together – Confidence

Level 3 – Leader & Employee

Level 3 – Leader & Employee Action item five

Action item four

Action item three

Action item two

Action item one

Qua

rter

One

Qua

rter

two

Qua

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thre

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ur

Objective threeObjective twoObjective one

Metrics or Targets

Met

ric th

ee

Met

ric fo

ur

Met

ric fi

ve

Met

ric si

x

Goal

thre

e

Goal

two

Goal

one

Met

ric o

ne

Met

ric tw

o

Metrics

Action Items

Goals

Objectives

1

2

3

4

Basic Steps • Step 1: Copy your applicable objectives and/or

create new objectives • Step 2: Copy your applicable goals and/or create

new goals – Complete relationship boxes

• Step 3: Define your action items or tasks – Complete relationship boxes

• Step 4: Assign metrics/targets and due dates – Complete relationship boxes

What didn’t work well with…

• Leaders and Employees – Sitting in with them – Not tying it in with goal setting – Having either of them fill it in on their own

What worked well with… • Leaders and Employees

– Using it as a learning opportunity – A simple, non-business example

• Another individual goal plan • The leaders should set an example here

– Filling it out together

Employees and Their Goal Plans • Most have SMART goals

Specific

Measurable

Attainable

Relevant

Time bound and Targeted

Employees and Their Goal Plans • Should be able to easily tie their

goals back to the organization’s missions or directions

• Know how they personally can impact their team and the bottom line

• Know when they need to accomplish their actions and goals

Lessons learned • Stay open minded • Give it a chance, and help others give it a chance • Be confident • Provide examples • Make it timely, start planning now

Moving forward • Don’t make this a one time

thing • Have the team leaders share

their matrix • Review them quarterly at

minimum to keep it fresh • Laminate and/or display • Find a central location for

level 1 & 2 • Make the pinwheel your own!

Summary • Hoshin Kanri and the X matrix can be a great

visual tool to understand where they fit • Productivity, pride and ownership increase when

people know their impact • Creates great touch points for communication

transfer and relationship building

Questions?

Contact information • Julie Miller: Director – Operational Excellence

– jemiller@integrysenergy.com – Find me on LinkedIn

• http://www.linkedin.com/in/juliemiller09

Example – Level 1

Example – Level 2

Example – Level 3